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Reading Notes

Economics Dr. Sauer

Chapter 8: Hypothesis Testing for Means and Proportions 8.1 Hypothesis Tests For Means 8.1.1 Null and Alternative Hypotheses A null hypothesis is a ________________________ made about a __________________ characteristic. The alternative hypothesis is the ________________________ to the null hypothesis. We should assume the _____________ hypothesis is TRUE until there is ________________ evidence to reject it. 8.1.2 The Classical Method for Testing Hypothesis (Significance Testing) The classical method involves declaring in ________________ that the ______ hypothesis will be rejected if the probability of selecting the present sample is ___________________________. 8.1.3 Type I and Type II Errors A Type I error refers to _____________________________ when it is actually true. The maximum probability of making a Type I error is _______________________________. A Type II error refers to ____________________________ when it is actually true. This probability is denoted by ______. Re-create Table 8.1 here for reference: H0 is Actually True You Accept H0 Ha is Actually True

You Accept Ha

The *power* of a test is the probability of ___________________________________________. 8.1.4 One- and Two-Sided Tests of Hypothesis One-sided tests refer to:

Two-sided (or two-tailed) test refer to:

8.1.5 Relationship between confidence intervals and tests of hypothesis

8.2 Hypothesis Tests for Proportions How does this differ from hypothesis testing for means?

8.3 Hypothesis tests for the Difference between means and proportions How do the test statistics differ when we are testing a difference between means (or proportions) instead of the mean (or proportion) itself?

8.4 Skip this section